Originally Posted By: David Nice This post was automatically imported from our archived forum.
I plan to finance my training and start up costs which will require me to provide a basic business plan. I am looking for some home inspection specific resources that will help me develop it. If anyone can assist or if anyone has created a plan and would be willing to let me see it would be a big help.
I am not new to creating business plans but I'm not sure quite where to begin in generating one for a home inspection business. I've been doing some basic market research but I still have a ways to go. I'm anxious to get it going since my financing is virtually guaranteed provided I offer a viable plan.
Originally Posted By: rsummers This post was automatically imported from our archived forum.
David how is your market area have you called any Realtors to get there open on a new Inspector in your area? I’m not sure if getting financed to open a inspection business is a good idea unless your sure that you will receive referrals from some where. I still get 80% of my business from Realtors referring me to their clients and it was really slow the 1st year and If I would of had to pay back a loan in those times the business would have failed. I would approach this business with caution and a back up source of income or you may find your self sleeping in the inspection truck.
Originally Posted By: David Nice This post was automatically imported from our archived forum.
I have a backup income with enough to cover repayment of loan even if I did zero business. I have done enough research to know there is room for more inspectors in my area and the area is also expandable. I have every confidence in my ability to make this thing go and have the free time to do it.
My main concern is coming up with a reasonable expectation of business in a 3 year plan (if not 5) and on paper.
Originally Posted By: mbartels This post was automatically imported from our archived forum.
Every book I read says a business plan is a must and I agree with 99.9% of that. I thought about it forever but just could not come up with anything solid. It is just about impossible to tell how much business you will get the first three years. Some posters here did 200+ their first year. However, I think 90% of the seasoned HI’s I have talked with say to expect 50-100. The first year for me has been tuff but I am slowly but surely expanding my referral base. Just since April I have been getting a steady 3-5 per week. So far I have grown a little each month. I started Oct.1 of last year and completed a whopping 3 inspections before jan. 1
Did not see that in my plan.
Actually I did expect to be slow because I started just before things slow down a little. Mainly between mid November-mid January in my area.
So in my opinion you should follow the advice of the majority of now successful HI’s and expect to starve to death during your first two years.
Also, remember to take into account ALL the fees of doing business.
If you think HI school is expensive…
Wait till you get with the real stuff.
I have spent in the last year over $20,000.00and some will say that I have done a good job at keeping expenses down.
Just be sure you know what you are getting into.
Do not believe the get rich quick motto that the schools are throwing to everyone. They are the only ones getting rich
About 80% of home inspectors will be out of business in two years or less.
Originally Posted By: David Nice This post was automatically imported from our archived forum.
Thanks Matthew…some good points well taken. I’ve been around the block in a few businesses in the past (some failed, some suceeded). I guess I’m lucky this time around because I have an income that I can count on and plenty of free time to take things step by step. My training and most equipment is already paid for. I have a truck that makes a good impression that I can use until I’m ready to buy or lease a newer one. So I plan to borrow for a laptop, software, report & marketing materials,advertising, additional equipment, NACHI membership etc.
I understand that there is no crystal ball that says how well business will go over the first few years but it is important to develop a feasable plan with certain milestones along the way. This can be invaluable in keeping a pulse on how things are going and what works and what doesn't. My credit is good but I need to at least present a business plan that looks reasonable before they cut me a check.
etc.